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Ford taken to task by gov't for Chicken Tax end-around

Ford is in a bit of a pickle for importing and selling Turkey-built Transit Connect cargo vans as passenger vehicles in the US, then converting them to commercial-vehicle specification stateside in an effort to bypass a 25-percent tax imposed on vehicles imported for commercial use. Automakers are required to pay a 2.5-percent tax on imported passenger vehicles.
The Blue Oval got into trouble for this in a January ruling in which U.S. Customs and Border Protection officials asked Ford to stop the practice of importing the Transit Connect vehicles with passenger seats, then removing and shredding them. Now Automotive News reports that Ford is appealing the ruling. The 25-percent "Chicken Tax," as the tariff is often called, is 50 years old and was enacted as a response to a German tariff on chickens. Like Ford, Chrysler bypasses the higher tariff, but it does so in a different manner. It partially disassembles Sprinter cargo vans before shipping them to the US, then rebuilds them at a plant in South Carolina.
But the ruling against Ford's strategy states that it "serves no manufacturing or commercial purpose" and is there to "manipulate the tariff schedule," Automotive News reports. As Ford's appeal goes through, it is importing the Transit Connect and paying the higher tax, hoping for a favorable outcome and planning to build the next-generation Transit Connect, which it plans to launch before the end of the year, in Spain.

Hands on with Ford Sync 3

It's kind of funny (not funny) how the infotainment systems in our vehicles seem to lag behind the consumer products in our pockets. Long after we had easy-to-use touchscreens on our phones, the glass panels in the center stack of our cars remained obstinately mired in the muck of technology past. We are happy to report it's getting better. We had a chance to go hands-on with the new Sync 3 system from Ford at a technology event. Not once were we struck by the urge to reach out and offer a bit of knuckled encouragement. The processors kept swiping smooth, and the voice recognition could understand even our mumbly mouthings. The voice prompts were certainly fewer and less frustrating than in times past. Ask for the nearest Indian restaurant, and it quickly brought up a list to choose from, ready to offer directions. Want to listen to NPR, just say the word. Sync 3 also improved its ability to get along with others, by which we mean it nicely integrates a range of apps from your phone and can incorporate their individual areas of expertise. With Pandora installed, we could ask for a particular playlist and it would begin streaming. If we wanted a certain artist, it would pull it from the phone's memory upon request. To get a sense of what how the new system functions, check out the video above for a quick look at the improved layout and a demonstration of its smoothness and smarts. To get a look at how it integrates with music streaming services, scroll down for a Pandora-centered Short Cut below.

2014 Ford Fiesta gets fuel economy bump to 41 mpg

The 2014 Ford Fiesta is in showrooms now with refreshed styling and new performance ST model, but it's what isn't yet available that should help the Fiesta stand out from the growing crowd of subcompacts. Aside from the new 1.0-liter EcoBoost model coming later this year, Ford recently told us that a new Fiesta SFE trim level is on the way that should put the updated Fiesta at the top of its class for fuel economy.
The new Fiesta SFE will hit an estimated 41 miles per gallon on the highway when equipped with the six-speed automatic transmission. The current listing on fueleconomy.gov shows the 2014 Fiesta getting up to 29 mpg city and 39 highway, but the SFE will get minor aero tuning and a recalibrated engine controller to help bump the highway figure past rivals like the Chevrolet Sonic and Nissan Versa - both of which top out at 40-mpg highway. There's still no word as to when the small 1.0-liter EcoBoost will show in the US, but Ford has indicated that engine's fuel economy isn't expected to be released until October.